Worst performing funds of Q1
By Sonia Rach, 4 Apr 18
Markets stumbled in 1Q18 after a positive run in 2017. While economic data was largely positive, Italy delivered an inconclusive election result, a new US Fed chair was appointed, and Donald Trump took the first steps towards a trade war.
In fourth position was the Smith & Williamson Global Gold & Resources fund with returns of -12.6%.
Over a three-year period, the fund slightly outperformed the IA Specialist benchmark with returns of 18.4%, compared to 19.3%.
Managed by Ani Markova, this fund has £43m under management and launched in 2004.
It largely invests in Canada (68.70%), followed by USA (10.40%) and Australia (8.30%).
Commenting on the underperformance of the fund, Hughes said: “It is interesting to see that a number of the worst performing funds are gold & precious metals funds. For many, Q1 has felt like a very difficult period that should have seen the supposed ‘safe haven’ assets, such as gold, perform well.”
Likewise, McDermott added: “Quite clearly the asset class has done alright, but the gold and silver miners have really underperformed which is a bit of a surprise.
“You can often get a disconnect between the gold price and how these gold funds perform but you don’t normally go quite that far away.”
Tags: Blackrock | Investment Strategy | Jupiter | Smith & Williamson
